A transaction showing a decrease in the balance carried in the New York bank might be as follows: A customer comes in and buys New York exchange for $5,000 in the form of a check drawn on the Tenth National Bank. The entries to cover that transaction would be:

Debit: Cash (11)....................

$5,000

or

Debit: Due to Depositors (37) (that is, customer's account)

5,000

Credit: Due from Tenth National Bank, New York (18) ...........

$5,000

The general ledger account of the New York bank is really the only bookkeeping record required, provided its space permits showing all debits and credits.